SERVICES PROVIDED BY PRE-SCHOOL (SERVICE TAX)

[NAMAN DOKANIA]

Sir,

Services provided by Pre-School is exempted by Notification 25/2012-ST or not?

[KASTURI SETHI]

Notification No.25/12-ST dated 20.6.12 as amended vide Notification No.9/2016-ST dated 1.3.16 Clause (a) of Entry No.9 specifically provides that services provided by an educational institution to its students, faculty and staff is exempt. Definition of an educational institution is given below :

[Notification No. 9/2016-S.T., dated 1-3-2016] Date of enactment 14.5.16

(ii) for clause (oa), the following shall be substituted with effect from such date on which the Finance Bill, 2016, receives assent of the President of India, namely :-

(oa) “educational institution” means an institution providing services by way of :

(i) pre-school education and education up to higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;

(iii) education as a part of an approved vocational education course

[Shilpi Jain]

It is exempt. But why have you got this doubt?

AI Summary

Pre-school service exemption affirmed: pre-school falls within educational institution exemption so qualifying services are exempt.
Services provided by pre-school are covered by the statutory exemption for services rendered by an educational institution to its students, faculty and staff; the amended definition of educational institution explicitly includes pre-school education, so services supplied by a qualifying pre-school to students, faculty and staff fall within the exemption.